PUTRAJAYA, Jan 20 – The implementation of the Good and Services Tax (GST) is on track and would not be deferred. Treasury secretary-general Tan Sri Dr Irwan Serigar Abdullah said by introducing GST on April 1, the government would be able to gain a projected revenue of RM1 billion.
He said the projected revenue from the implementation of the new tax was a little conservative but the government was positive that it would assist the nation’s economic growth. “We are a bit conservative in our target because we estimated 120,000 companies (to implement the tax) and as of yesterday, we have 304,000 companies,” Irwan told reporters after attending the Current Economic Outlook Council meeting, here today.
The revenue, he said, may surpass the initial RM1 billion target set by the government and if it does exceed, it would be a plus point for the country. “If it surpasses RM1 billion then this will be a plus point for us as our current deficit can go back to being three per cent,” Irwan added.
The government was also very prudent in terms of spending and more realistic in estimating the economic growth and the fiscal target based on the current economic outlook due to the weakening of the ringgit value and declining global crude oil prices, he also said. It was previously reported that several analysts and economists have opined that the consumption tax should be deferred as there was a sharp drop in local businesses confidence in the economy’s performance this year.